OpenTable Meal Is Worth the Bill

Priceline's Acquisition, Though Expensive, Makes Sense

By

Dan Gallagher

June 13, 2014 3:25 p.m. ET

Priceline may be paying a high tab to gobble up OpenTable, but the deal could bring the online travel company some sweet rewards, longer term.

The $2.6 billion in cash Priceline is paying represents about 51 times forward earnings for the 16-year-old company, which provides online-reservation systems to restaurants. The deal is worth $103 a share to OpenTable investors, who haven't seen the stock at that level since May of 2011. The...